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Full Description
Input-output analysis is the main tool of applied equilibrium analysis. This textbook provides a systematic survey of the most recent developments in input-output analysis and their applications, helping us to examine questions such as: which industries are competitive? What are the multiplier effects of an investment program? How do environmental restrictions impact on prices? Linear programming and national accounting are introduced and used to resolve issues such as the choice of technique, the comparative advantage of a national economy, its efficiency and dynamic performance. Technological and environmental spillovers are analysed, both at the national level (between industries) and the international level (the measurement of globalisation effects). The book is self-contained, but assumes some familiarity with calculus, matrix algebra, and the microeconomic principle of optimizing behaviour. Exercises and review questions are included at the end of each chapter, and solutions at the end of the book.
Contents
Preface; 1. Introduction; 2. Input-output basics; 3. Multiplier effects; 4. Linear programming; 5. Are input-output coefficients fixed?; 6. The system of national accounts; 7. The construction of technical coefficients; 8. From input-output coefficients to the Cobb-Douglas function; 9. The diagnosis of inefficiency; 10. Input-output analysis of international trade; 11. Environmental input-output economics; 12. Productivity growth and spillovers; 13. The dynamic inverse; 14. Stochastic input-output analysis.
